Doha: Starbucks has announced plans to lay off 1,100 employees worldwide following a significant decline in sales due to a global boycott over its alleged support for Israel. CEO Brian Nicholl confirmed the layoffs, acknowledging that boycott campaigns have severely impacted the company’s financial standing. The coffee giant had already indicated earlier that job cuts would take place by March. Other companies, including the French retail giant Carrefour, have also suffered losses due to similar boycott movements, leading to closures in countries like Oman and Jordan.
The boycott has led to a steep drop in Starbucks’ sales, particularly in Arab and Muslim-majority nations, as well as among Afro-American consumers. Some stores saw little to no customers, forcing the company to shut down several outlets. The financial impact extended to the stock market, with Starbucks’ share price dropping to $91.4 per share, resulting in an estimated $11 billion loss in market value. The campaign has also affected Starbucks’ presence in Europe, including Turkey, where sales have declined sharply.
The boycott, driven by the Boycott, Divestment, and Sanctions (BDS) movement, targets companies accused of supporting Israel’s military actions in Gaza. BDS activists continue to hold protests outside outlets of corporations on their list, which includes major brands such as McDonald’s, PepsiCo, Netflix, Puma, Intel, and Amazon. In response to the financial downturn, Starbucks has denied claims of providing financial support to Israel and has publicly condemned the violence in the region.
